Zscaler (NASDAQ:ZS) Reaches New 52-Week Low – Here’s What Happened

Zscaler, Inc. (NASDAQ:ZS)’s stock price hit a new 52-week low during trading on Wednesday . The company traded as low as $139.30 and last traded at $139.41, with a volume of 3408895 shares changing hands. The stock had previously closed at $151.80.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: P0 Security announced a technology partnership with Zscaler to extend Zero Trust access for private resources — a direct product/market validation that can help sales and enterprise adoption. P0 Security Announces Technology Partnership with Zscaler to Advance Zero Trust for Private Resources
• Positive Sentiment: Versa announced automated integration with Zscaler Internet Access (ZIA) to simplify secure branch connectivity — this tightens Zscaler’s ecosystem and could accelerate SASE deployments. Versa Simplifies Secure Branch Connectivity with Automated Integration for Zscaler Internet Access
• Positive Sentiment: CEO Jay Chaudhry reiterated at RSA that AI won’t replace mission‑critical traffic inspection that requires 100% reliability — a message that supports Zscaler’s differentiation and long‑term TAM positioning in AI+security. Zscaler CEO: AI can’t replace mission-critical traffic inspection requiring 100% reliability
• Positive Sentiment: Brown Advisory’s Mid‑Cap Growth strategy disclosed establishing a position in Zscaler — an institutional buyer note that can be viewed as a vote of confidence. Here’s Why Brown Advisory Mid-Cap Growth Established a Position in Zscaler (ZS)
• Neutral Sentiment: Zacks flagged Zscaler as a trending stock, increasing retail/analyst attention but not delivering new fundamental news. Zscaler, Inc. (ZS) Is a Trending Stock: Facts to Know Before Betting on It
• Neutral Sentiment: Industry pieces emphasize Zero Trust as central to AI security strategies — a thematic tailwind for Zscaler but not company‑specific news. Zero Trust Anchors AI Security Strategy
• Negative Sentiment: Multiple short‑interest notices report a “significant increase” but show 0 shares/NaN changes — the headline of rising short interest can pressure sentiment despite the apparent data errors; watch for any confirmed short filings or updates.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on ZS. UBS Group dropped their target price on Zscaler from $350.00 to $340.00 and set a “buy” rating on the stock in a research report on Wednesday, November 26th. Citizens Jmp reduced their price target on Zscaler from $355.00 to $290.00 and set a “market outperform” rating for the company in a report on Friday, February 27th. Mizuho decreased their price target on Zscaler from $265.00 to $250.00 and set an “outperform” rating on the stock in a research note on Friday, February 27th. TD Cowen dropped their price objective on Zscaler from $330.00 to $260.00 and set a “buy” rating on the stock in a report on Tuesday, February 24th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Zscaler in a report on Wednesday, January 21st. Two investment analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Zscaler presently has an average rating of “Moderate Buy” and a consensus price target of $267.13.

Zscaler Stock Down 8.2%

The stock has a market capitalization of $22.42 billion, a PE ratio of -331.93 and a beta of 1.07. The firm has a 50 day moving average of $175.03 and a two-hundred day moving average of $240.68. The company has a current ratio of 1.90, a quick ratio of 1.90 and a debt-to-equity ratio of 0.78.

Zscaler (NASDAQ:ZS) last posted its earnings results on Thursday, February 26th. The company reported $1.01 EPS for the quarter, topping analysts’ consensus estimates of $0.89 by $0.12. The company had revenue of $815.75 million for the quarter, compared to the consensus estimate of $798.92 million. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.Zscaler’s quarterly revenue was up 25.9% compared to the same quarter last year. During the same period in the previous year, the business earned $0.78 earnings per share. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. Equities research analysts anticipate that Zscaler, Inc. will post -0.1 earnings per share for the current year.

Insider Transactions at Zscaler

In other Zscaler news, EVP Raj Judge sold 2,488 shares of Zscaler stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $389,595.92. Following the completion of the transaction, the executive vice president owned 67,906 shares in the company, valued at approximately $10,633,400.54. The trade was a 3.53% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director James A. Beer sold 177 shares of the company’s stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total transaction of $27,174.81. Following the completion of the sale, the director directly owned 4,384 shares in the company, valued at $673,075.52. This trade represents a 3.88% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 12,783 shares of company stock worth $2,040,536 in the last 90 days. Insiders own 17.20% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Binnacle Investments Inc acquired a new stake in Zscaler during the 3rd quarter valued at $25,000. Tradewinds Capital Management LLC lifted its position in shares of Zscaler by 145.7% in the third quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock valued at $26,000 after acquiring an additional 51 shares in the last quarter. Root Financial Partners LLC purchased a new stake in shares of Zscaler in the third quarter valued at $26,000. McIlrath & Eck LLC acquired a new stake in shares of Zscaler during the third quarter valued at $29,000. Finally, AlphaCentric Advisors LLC purchased a new stake in Zscaler during the 4th quarter worth about $29,000. 46.45% of the stock is currently owned by institutional investors and hedge funds.

About Zscaler

Zscaler is a cloud security company that delivers a cloud-native platform to protect users, applications and data as organizations move away from traditional, network-centric security architectures. The company focuses on a zero trust approach that assumes no implicit trust for users or devices, providing secure access to the internet, SaaS applications and private applications regardless of where users are located. Zscaler positions its services as an alternative to legacy appliances and site-centric VPNs, aiming to simplify security while enabling modern, distributed workforces.

Key offerings are built around the Zscaler Zero Trust Exchange, a multi-tenant cloud platform that enforces security and access policies in-line.